Management Control Right Incentive Empirical Study On The Quality Control Of The Effect Of Internal

With a series of economic scandals happened such as " Enron "and " WorldCom", all those things caused huge economic losses for the company ’s employees andstakeholders. In order to avoid similar incidents from happening again, the U.S.Sarbanes-Oxley Act explicitly requires management to report and evaluate theeffectiveness of internal control. In2008the Basic Norms of Internal Control waspromulgated which requires companies to establish and supervise internal control, soas to ensure the effective operation of the company ’s internal controlsystem.Therefore, improving the quality of internal control for the companies hasbecome an urgent problem. To find out the reasons of the low internal control qualityfor the listed companies, to carry forward the positive factors and reduce or controlthe negative impact on the quality of internal control has became a pressing issue.With the separation of ownership and management, management as a manager of thecompany ’s internal control daily operations is responsible for the internal controlsystem. What did they do is greatly affecting the internal quality control. Therefore,many companies design all kinds of incentives compensations, such as incentivecompensation, equity incentive and so on, to try to solve agency problems betweenowners and managers. This paper aims to explore the connection between themanagement control of the excitation and the quality of internal control for the listedcompanies in order to take advantage of its conclusions to help companies improvethe company’s internal quality control. The research ideas of this paper is to introducethe research background and significance firstly and then comb the literature reviewand theoretical foundation management of control over the incentive effect and thequality of internal control. On this basis, this paper firstly presents fourhypotheses,such as two jobs-one management, management independence,management tenure and ownership concentration, as the independent variable, thequality of internal control of listed companies as the dependent variable, companysize, company profitability, the company’s financial leverage as a control variable,and then establish Logistic regression model, and then do the correspondingdescriptive statistics, correlation analysis and Logistic regression analysis; Finally,the paper will draw conclusions and make recommendations.